This invention relates to a system for providing information and performing financial transactions. In particular, it relates to a financial system which utilizes wireless, portable terminals for providing financial information and performing financial transactions.
The proliferation of automated teller machines (ATMs) has revolutionized the banking and financial services industry by increasing the ability to provide financial services to the consumer. For example, in the past virtually all consumer transactions were conducted in person. Thus, consumer access was generally limited to the business hours of branch locations. With the advent of ATM and other financial networks, consumers may now access financial services virtually twenty-four hours a day, seven days a week. This results in increased convenience and efficiency both for the service provider and the consumer.
Despite these successes, ATM and other financial networks in use today are characterized by certain shortcomings which limit consumer access and provide a barrier to more widespread accessibility and use. For example, the ATMs in greatest use today are hard wired in a fixed location. This hard wiring is necessary to provide power for the terminal and to provide access to communication lines, such as telephone lines, over which data may be exchanged with the financial service provider. Security concerns also play a role in limiting ATMs to fixed locations.
As a result of the fixed location of such terminals, financial networks must take great care in distributing ATMs over a particular geographic region so as to maximize consumer access. However, with changing demographics, such distributions may become less advantageous. For example, a new shopping mall may open in a first location, increasing demand in that area, while another mall may close in a second location thereby decreasing demand in that location. One-time or isolated events resulting in an unexpected influx of people to a particular area may also result in an overwhelming demand which cannot be met satisfactorily by an existing distribution of terminals.
Currently, such problems may be addressed by providing additional ATM terminals. However, the capital costs of such terminals and the necessary peripheral equipment, such as power supplies, maintenance facilities and so forth may be too prohibitive to permit adaptive response to the above-described changes in consumer demand.
Accordingly, there is a need for a financial transaction and information system which can overcome the aforementioned shortcomings. Specifically, there is a need to provide transaction and information terminals which can be conveniently repositioned by the operator as necessary to maximize availability and use of the financial services provided thereby. Further, there is a need for transaction and information terminals which do not need to be directly connected by lines to a telephone network or power source network.
There is an additional need to provide the above-described features without compromising the security provided by existing systems and without introducing inordinate costs.
It is an object of the invention to meet these needs, and others, through a financial information and transaction system which utilizes wireless communication in connection with portable terminals. In this system, a terminal is connected to the financial institution via a wireless or cellular telephone hook-up. It is a feature of the invention that so-called xe2x80x9csmart cardsxe2x80x9d are utilized to verify authorization for transactions, thereby minimizing potential security problems which could otherwise result from use of a mobile terminal. According to an alternate embodiment of the invention, a smart card is advantageously utilized not only for authorization, but also to maintain a secure record of available funds.
According to another embodiment of the invention, a portable transaction terminal is internally powered by, for example, rechargeable batteries. In an alternate embodiment, the terminal is powered by a standard ac power supply through a conventional outlet.
In yet another embodiment of the invention, a cellular telephone, having a smart card reader incorporated therein, is utilized as a data terminal for various financial transactions.
According to a further embodiment, the system not only provides the functionality of an ATM network, but also provides non-financial services thereby forming an integrated system.
The above, and other objects, features and advantages of the present invention will become readily apparent from the following detailed description thereof which is to be read in connection with the accompanying drawings.